Amravati: Budget 2024 gives wings to Chandrababu Naidu's dream

The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has earmarked a substantial package of Rs 15,000 crore for Andhra Pradesh, providing a significant boost to the long-stalled Amaravati capital project. This financial injection is set to rejuvenate the ambitious vision of Chief Minister N. Chandrababu Naidu, who has long championed the development of Amaravati as a world-class capital city.

Reviving Amaravati: A Dream Reignited

The announcement comes as a lifeline for the Amaravati project, which had languished in a state of neglect and abandonment over the past five years. The funds are scheduled to be released within this financial year, aligning with project requirements and progress. Additionally, the government has committed to ongoing financial support in the coming years.

The allocation aims to complete the unfinished infrastructure, which includes high-rise apartments, government offices, and essential utilities that were left halfway after Naidu's initial tenure from 2014 to 2019. The project faced a significant setback when the succeeding YSRCP government shifted focus towards decentralising the capital functions, stalling progress on Amaravati.

Industrial Corridors: Catalysts for Investment

The Budget also announced the establishment of two industrial corridors that will partially cover Andhra Pradesh: the Visakhapatnam-Chennai-Orvakal-Hyderabad corridor and the Hyderabad-Bengaluru corridor. These corridors are expected to attract substantial industrial investment, fostering economic growth and creating employment opportunities in the region.

Finance Minister Sitharaman stressed the government’s commitment to fulfilling promises made under the AP Reorganisation Act, 2014, inc0luding the completion of the Polavaram irrigation project and the development of backward areas in Rayalaseema, Prakasam, and north Andhra Pradesh districts.

Addressing Historical Neglect

The infusion of funds and renewed focus on Amaravati comes after years of financial drought for the project. Both the World Bank and the Asian Infrastructure Investment Bank (AIIB) had previously pulled out of the Amaravati project in 2019, citing uncertainty and shifting priorities of the then government. This withdrawal left the project with several nearly completed but unoccupied buildings and infrastructure, which had begun to deteriorate.

Political and Economic Implications

The funding is seen as a significant political victory for Chandrababu Naidu and his party, the Telugu Desam Party (TDP), which is part of the ruling National Democratic Alliance (NDA). Naidu had made several trips to New Delhi, lobbying for support to revive the Amaravati project. The announcement reflects the central government's support and recognition of the strategic importance of Andhra Pradesh in India's economic landscape.

"On behalf of the people of Andhra Pradesh, I thank the Hon'ble Prime Minister, @narendramodi Ji, and Hon'ble Union Finance Minister @nsitharaman for recognising the needs of our State and focusing on a Capital, Polavaram, industrial nodes, and development of backward areas in AP in the Union Budget of FY 24-25," Naidu tweeted. “This support from the Centre will go a long way towards rebuilding Andhra Pradesh.”

(Source: Republicbiz)